Asia’s business hub Singapore has been changing continuously and to keep up with the pace of global business trends and policies. A sense adopting what’s coming new and to release what has become obsolete is the foremost essential required.
Integrating HR and payroll software helps reduce administrative workload by up to 40% along with minimizing crucial and expensive human errors that occur frequently in manual data processing.Payroll software are viable enough to handle everything from recruitment and onboarding to leave management, attendance tracking, and accurate payroll calculation, along with ensuring complete compliance with Singapore’s labour laws and CPF contributions.
The payroll outsourcing market is on all time rise, with projections indicating towards a
rise from $12.01 billion in 2024 to $17.58 billion by 2029, impacted by factors like cost efficiency and compliance requirements.
Payroll outsourcing Trends 2025
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- The global payroll outsourcing market has reached USD 9.7 Billion in 2024 and is projected to cross USD 15.5 Billion by 2033.
- The market is expected to grow at a Compound Annual Growth Rate (CAGR) of 5.04% between 2025 and 2033.
- The payroll outsourcing market is expected to grow to $17.58 billion in 2029 at a CAGR of 8.0%.
- The Payroll Outsourcing Market size is estimated at USD 12.44 billion in 2025.
- The market is expected to cross the USD 16.87 billion mark by 2030, at a CAGR of 6.27% during the forecast period (2025-2030).
Table of Contents
Top Reasons to Invest in Payroll Software
1. Automating Payroll for Enhanced Accuracy
Payroll automation minimizes human errors in calculations. Reports show that automated systems achieve 99.7% accuracy in payroll processing relatively to 87% with manual processes.
Payroll Software handles complex calculations for
- CPF contributions
- Additional Wage calculations
- Overtime and shift differentials
- Bonuses and commissions
- Tax withholdings
Employees experience consistent and error-free compensation processes. Self-service portals enable staff to access pay details, reducing HR inquiries by approximately 40%.
2. Quicker Payroll Processing
Manual payroll processing is always time-consuming. You have to ensure all the information is entered accurately and that everything is as required before submitting to statutory bodies. In case of any errors, you will have to fix and start with all over again.
3. Faster Filing of Payroll Taxes
Payroll softwares helps you file your payroll taxes fastly and easily. Softwares are tough enough to handle all the calculations for you, as they are designed to handle any team sizes and complexities.
4. Lower Cost of Payroll Taxes
Expenses increase for manual payroll processes which are associated with hiring an accountant or bookkeeper to maintain records for your payroll taxes, and they never change as per your business revenues and needs whereas software could be customized with features as per your team sizes and needs.
5. Avoid Mistakes
Payroll taxes and the processes related are mostly complicated, and in case of any inaccurate submission, you could be penalised from statutory bodies like IRAS. Softwares runs with ML and learns and in case of any uneven entry, it notifies and never directly submits, which helps you review your call more than once.
6. Get Rid of Paperwork
Paperwork involved in payroll taxes submission eats up space at workplaces as you have to maintain track of employee details, keep copies of their W-2s and file the forms as required. Using payroll softwares takes away all this and you don’t have to worry about any paperwork or maintain any such record.
7. Better Security
PDPA compliance guidelines clearly outline the repercussions in case of any accuracy or non compliance. These instances occurring frequently could tarnish the reputation of any business. An ideal payroll software overcomes all this and enables a business to save and keep their employee data safely and securely fulfilling the compliance as stated by PDPA guidelines.
Also Read: What is the Purpose of a Performance Appraisal?
Why Choose PeopleCentral Payroll Software?
A Multi-Award Winning & AI-enabled HR & Payroll Platform Empowering HR in Singapore. All-in-one, easy-to-use AI-enabled HRMS Platform Empowering HR offering total automated solutions with various pre-approved grants PSG, Tech-And-GO, Digi-TAC. Trusted by over 100,000+ Users in Singapore.
Key Features
- Full-Service Payroll: People Central automates payroll processing, including IRAS, IR8A and other tax filings, direct deposits along with simple options for customisation.
- Employee Benefits, Compliance Management, Employee Self-Service, Integration Options, Employee, Leaves, Claim, Payroll, Appraisal, Timesheet, Schedule, Announcements, Reminders & Alerts, Workflow
Best For
Small to large-sized businesses, which needs a simple yet efficient payroll and HR solution with easy-to-use features and 24*7 support.
Conclusion
Make sure you understand the levels of security measures adopted by the payroll software, it would only ensure how your employee data is being handled and secured. Sometimes a business chooses a low cost payroll softwares and never checks on their security measures to mitigate risks, remember that only in 2023, employee data breaches in Singapore jumped to a five-year high, with 3,208 breaches reported, a 41% increase from 2,279 in 2022 along with Ransomware attacks on employee rising by 57%.
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